UNIVERSITY OF NORTHERN COLORADO: FINANCIAL REPORT 09/30/2018

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1 UNIVERSITY OF NORTHERN COLORADO: FINANCIAL REPORT 09/30/2018 OVERVIEW Financial highlights of the fiscal year st quarter financial report are summarized below: Cash (pages 2-3) The University s cash position is $51.4 million with $19.1 million in centralized reserves. Cash at June 30, 2019 (fiscal year-end) is forecasted to be $33.0 million. Reserves (page 4) Reserves are currently $19.1 million, with $4.5 million in the University Reserve after funding FY19 strategic investments and FY19 capital projects. Accounts Receivable (page 5) The 1 st quarter net accounts receivable is $24.5 million, which is $1.4 million higher than last year at this time. The timing of receivables can vary noticeably from year to year; therefore, the most consistent benchmark is the fiscal year-end. Trend information is shown in Tables 4 and 5. Operating Budget (page 6) The fiscal year operating budget at 1 st quarter forecast shows operating results of $5.3 million before transfers of UNC Foundation capital gifts, student capital fees, and other operating funds to capital reserves to finance future capital projects. Operating results less transfers is a deficit of $4.5 million. Details of revenues, expenditures and transfers are as follows: o Net revenue - $200.5 million Gross tuition, fees and room & board - $170.6 million Discounting - $41.3 million State appropriations - $42.5 million Foundation support - $11.5 million All other revenue - $17.2 parking, athletics, theater, etc. o Personnel expenditures - $140.2 million o Non-personnel expenditures - $44.0 million o Debt payments for bonds and capital leases - $11.0 million o Transfer of restricted Foundation to Capital Budget - $2.1 million o Transfer of student fee and other operating funds to Capital Budget - $7.7 million Page 1

2 CASH Total cash, as of September 30, 2018, is $51.4 million. Campus Commons bond proceeds of $16.3 million held by the University are not included in the cash balances in Figure 1. Figure 1. Cash Balance at September 30, 2018 The cash flow trend has been relatively consistent over the last four years, as shown in Figure 2. The low point during the year has traditionally occurred in mid-august and is a good point for benchmarking purposes. This is noted with the letter A in the graph. Figure 2. Annual Cash Flow Trend $90,000,000 $80,000,000 FY15 FY16 FY17 FY18 FY19 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 A Jul Aug 15 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Page 2

3 The University s first quarter cash position is $0.5 million more than the previous year at this time, as shown in Table 1. In both FY18 and FY19, the COF and Fee-For-Service payments were received in October rather than September as in previous years. In FY19, the payment for COF was $7.9 million and Fee-For-Service was $8.6 million. Table 1. Overall Cash Balance Month FY15 FY16 FY17 FY18 FY19 Jul 52,203,773 37,814,641 29,249,252 33,276,779 24,244,573 Aug 15 48,277,445 39,776,437 27,569,804 30,695,963 25,687,881 Aug 63,727,315 54,843,178 45,569,608 55,010,566 45,894,538 Sep 67,633,545 69,407,889 62,576,984 50,974,277 51,418,070 Oct 77,000,173 57,813,291 56,504,939 60,844,876 Nov 67,829,386 57,080,941 45,297,668 46,089,205 Dec 61,966,401 50,684,129 40,268,950 39,944,050 Jan 86,298,922 76,476,844 66,080,438 72,704,334 Feb 86,539,392 85,070,248 79,274,077 77,058,925 Mar 79,278,071 67,433,066 69,900,428 63,461,732 Apr 71,527,719 57,968,958 60,462,128 56,317,591 May 58,214,450 48,614,786 47,864,971 40,532,425 Jun 61,721,397 46,873,470 53,966,795 40,531,605 The University also has Campus Commons bond proceeds that are not included in the cash table for comparative purposes. The cash forecast below is intended to give a quick summary of the effect of FY19 operating results, strategic investments and capital expenditures on cash. The total column may be most helpful, as it reflects the forecasted decrease in cash for FY19 of $7.5 million, which is $3.0 million more than the budgeted decrease of $4.5 million. Table 2. Cash Forecast Operating Restricted Strategic Investments Capital Projects Reserves Total Cash at 06/30/2018 $ 8.5 $ 0.1 $ 1.9 $ 4.4 $ 25.6 $ 40.5 FY19 Transfers Strategic Investments (2.2) - Capital Projects/Small Equipment (7.6) (0.5) Perkins UNC Portion 0.1 (0.1) Reserve Transfers July (6.2) - Foundation Capital Gifts (2.1) Subtotal Transfers (3.4) (0.6) (6.2) - FY19 Net Cash Inflows (Outflows) Operating Results FY Strategic Investments - - (3.9) - - (3.9) Capital Cash State & Debt Capital Projects/Small Equipment (35.1) - (35.1) Subtotal Inflows (Outflows) (3.9) (9.4) - (7.5) Cash at 06/30/2019 $ 10.3 $ 0.1 $ 0.2 $ 3.0 $ 19.4 $ 33.0 Page 3

4 CASH RESERVES Our cash reserves, which is cash that is segregated from our operating, strategic investment and capital balances, provide a cushion for operational contingencies and more significant risks. Table 3. Cash Reserves Summary at September 30, /30/2018 FY19 Q1 Activity 09/30/2018 Mandatory Bonded R&R $ 750,000 f $ (750,000.00) $ - Capital Student Fees 4,557,644 a,c,g 4,031,142 8,588,786 Other Capital Reserves 5,637,721 a,d,g (2,231,266) 3,406,455 Other Risk Management and Insurance 2,650,000-2,650,000 University Reserve 11,978,596 b,e,f (7,522,528) 4,456,068 Total Reserves $ 25,573,961 $ (6,472,652) $ 19,101,309 Each year, UNC increase reserves by transferring a portion of student capital fee revenue, room and board revenue, parking, and rebate revenue from the operating budget to reserves to fund future capital projects. Reserves are reduced when we transfer reserves to fund approved capital projects, strategic investments, or need to increase operating cash. The following is an accounting of the transfers made so far in FY19 and the letters reference Table 3. UNC has a practice of fully funding capital projects and strategic investments for each fiscal year at the beginning of the fiscal year. a. Fund $3.4 million in FY19 capital projects and $0.5 million in FY19 capital equipment b. Fund $2.2 million in FY19 strategic investments UNC has a practice of transferring revenue designated for capital into reserves at the beginning of the fiscal year. c. Transfer $5.2 million from student capital fee and LEAF fee operating cash into capital reserves d. Transfer 0.5 million from parking services operating cash and rebate revenue into capital reserves At August 15, (UNC s cash low point), sufficient cash is transferred from reserve funds to the operating funds e. Transfer $6.2 million from University reserve to operating cash The following transfers are unique to FY19: f. Transfer $0.8 million from Bonded RR to University reserve, which is no longer required with the refinancing of the Series 2008 Bonds g. Transfer $1.1 million from student fee capital reserve to state building capital reserve to fund capital projects in State buildings Page 4

5 ACCOUNTS RECEIVABLE Table 4 and Figure 3 show that the September 30, 2018, 1 st quarter balance in student accounts receivable is $1.4 million more than the previous year. In both FY18 and FY19, the COF payment was received in October rather than September, (as is typical), resulting in a higher net student accounts receivable. In FY19, the COF payment was $7.9 million. Net student accounts receivable includes the accounting estimate for uncollectible accounts or bad debt. Table 4. Student Accounts Receivable (Net) FY17 FY18 FY19 Q1 - Sep 30 $ 15,904,277 $ 23,082,213 $ 24,511,314 Q2 - Dec 31 $ 4,791,141 $ 4,989,072 $ - Q3 - Mar 31 $ 8,322,159 $ 7,807,471 $ - Q4 - Jun 30 $ 6,853,821 $ 5,752,210 $ - Figure 3. Student Accounts Receivable (Net) Table 5 represents accounts receivable as a percentage of tuition, fees and room and board revenue at fiscal year-end. Table 5. Year-end Student Accounts Receivable as a Percent of Billings Page 5

6 OPERATING BUDGET Original Budget Annual Forecast % of Total Variance fav (unfav) Actual at 09/30/2018 % Actual to Budget Notes REVENUES Tuition-Undergraduate Main Campus 2 $ 79,996,337 $ 77,400, % $ (2,595,780) $ 38,193, % Tuition-Graduate Main Campus 3 17,079,161 14,692, % (2,386,491) 6,639, % Tuition-Undergraduate Extended Campus 2 5,032,826 5,472, % 440,111 1,962, % Tuition-Graduate Extended Campus 3 18,225,765 17,817, % (408,557) 6,473, % Student Fees 2/3 16,276,843 16,135, % (140,880) 7,986, % Academic Fees - Main Campus 2/3 6,418,857 6,166, % (251,873) 2,949, % Academic Fees - Extended Campus 2/3 111, , % 25,255 49, % Room and Board 4 35,342,265 32,747, % (2,594,668) 17,126, % Subtotal Tuition, Fees and Room & Board 178,483, ,570, % (7,912,883) 81,381, % Scholarships (Institutional Discounting) 5 (32,939,794) (30,286,553) -15.1% 2,653,241 (15,168,728) 46.0% Foundation Funded Scholarships 5 (4,350,000) (4,575,745) -2.3% (225,745) (1,696,756) 39.0% Graduate GA/TA Waivers 5 (5,717,537) (5,400,000) -2.7% 317,537 (2,624,936) 45.9% R & B Waivers 5 (1,130,000) (1,035,300) -0.5% 94,700 (495,160) 43.8% Subtotal Discounting (44,137,331) (41,297,598) -20.6% 2,839,733 (19,985,580) 45.3% COF Resident 6 16,789,891 16,629, % (160,041) 7,889, % Fee For Service 6 25,689,034 25,849, % 160,041 6,347, % Subtotal State Support 42,478,925 42,478, % - 14,236, % Foundation Restricted Gifts for Operations 7 3,027,042 3,223, % 196, , % Foundation Restricted Capital Gifts 8 2,247,518 2,117, % (130,000) 60, % Foundation Restricted Scholarships 7 4,350,000 4,575, % 225,745 1,696, % Foundation Unrestricted (design. for scholarships) 7 1,550,000 1,550, % - 387, % Subtotal Foundation Support 11,174,560 11,466, % 292,308 3,081, % Other Auxiliary Services 9 7,303,273 6,932, % (370,299) 2,688, % Restricted Grant Facilities/Admin Recovery 9 600, , % - 144, % Other Revenue 9 7,713,686 7,961, % 248,025 2,338, % Net Non-Operating Revenues 9 1,531,250 1,736, % 205, , % Subtotal Other Revenue 17,148,209 17,231, % 83,344 5,493, % NET REVENUES $205,148,075 $ 200,450, % $ (4,697,498) $ 84,207, % EXPENDITURES AND DEBT PAYMENTS Faculty Salaries 10 $ 46,589,312 $ 47,336, % $ (747,088) $ 10,126, % Exempt Salaries 10 30,988,725 30,800, % 188,725 7,628, % Classified Salaries 10 19,406,629 19,000, % 406,629 4,699, % Graduate Stipends 10 5,678,771 5,100, % 578,771 1,215, % Student and Other Wages 10 6,367,157 6,364, % 3,157 1,335, % Fringe Benefits 10 31,534,858 31,584, % (49,342) 7,837, % Subtotal Personnel Expenses 140,565, ,184, % 380,852 32,843, % Cost of Sales 11 4,927,214 4,519, % 407,478 1,142, % Other Current Expenses 11 12,605,039 12,506, % 98,705 5,323, % Purchased Services 11 10,389,234 10,193, % 196,010 2,424, % Supplies 11 6,367,290 6,190, % 176,808 1,332, % Cost Allocation and Recoveries 11 (898,173) (1,157,240) -0.6% 259,067 (262,987) 29.3% Utilities 11 5,562,313 5,181, % 380,557 1,386, % Travel 11 4,225,166 4,027, % 197, , % Capital 11 2,607,842 2,467, % 140, , % Subtotal Non-personnel Expenses 45,785,925 43,929, % 1,856,292 12,083, % Debt Service on Bonds 12 10,810,242 10,272, % 537,637 2,291, % Capital Lease Payment , , % - 179, % Subtotal Debt Payments 11,613,910 11,076, % 537,637 2,471, % TOTAL EXPENDITURES AND DEBT PAYMENTS $197,965,287 $ 195,190, % $ 2,774,781 $ 47,398, % OPERATING RESULTS $ 7,182,788 $ 5,260,071 $ (1,922,717) $ 36,809,056 Transfer to Capital Budget - Foundation 8 2,247,518 2,117, ,000 60,295 Transfers to Capital Budget 13 7,667,513 7,667,513-5,727,513 OPERATING RESULTS LESS TRANSFERS $ (2,732,243) $ (4,524,960) $ (1,792,717) See Explanation of Notes on page 7. For the Quarter Ended September 30, Recap of FY18 Forecasted Cash Outflow Operating Results (above) $ 5,260,071 Strategic Investments (page 9) (3,934,852) Capital (page 10) (8,978,336) Other (page 3) 127,750 Total (Table 2, page 3) $ (7,525,367) Page 6

7 Notes to Second Quarter Budget to Forecast Report (page 6) This report includes operating funds and restricted gift funds from the UNC Foundation. This 1 report does not include strategic investments, internal sales, capital projects, restricted grants and contracts, or restricted financial aid. Net undergraduate tuition and fees revenue are 36% of the net operating revenue and are 2 forecasted to be $0.7 million under budget for FY19. Net graduate tuition and fees revenue are 15% of the net operating revenue and are forecasted 3 to be $1.6 million under budget for FY19. Net room and board revenues represent 16% of the net operating revenue and are forecasted 4 to be $2.5 million under budget for FY19. Discounting includes scholarship expense, graduate tuition waivers and room and board 5 waivers. Total discounting is forecasted to be $2.8 million less than budget. 6 State support is 21% of net operating revenue. Support from the UNC Foundation consists of gifts that are restricted for program support, capital, or scholarships. UNC also has an agreement with the Foundation to receive $1.6 7 million in unrestricted support, which funds institutional scholarships. Total Foundation support in the operating budget is $11.5 million, or 6% of net operating revenue. The forecast for FY19 includes $2.1 million in gifts to be utilized primarily for the construction of the Campus Commons. This is shown in the Operating Budget as Foundation 8 Restricted Capital Gift revenue in the top section with a corresponding transfer out to the capital budget at the bottom of the report. Other sources of revenue comprised 9% of net operating revenue and come from parking, retail sales, athletics events, vending machines, licensing, theatre, grant administrative 9 revenue, late fees and treasury interest. Other revenue is forecasted to be $0.1 million more than budget. Personnel expenditures are 72% of total expenditures. Personnel expenditures are $ million under budget. Non-personnel expenditures are 23% of total expenditures. The University is working to 11 contain costs this year and we currently forecast being $1.9 million under budget. Debt service and capital leases are 6% of total expenditures. The University will have $ million in cash flow savings from the refinancing of the 2008 and 2011B bond issues to the 2018A and 2018B issues. Transfers to capital budget include $0.1 million from the facilities management capital 13 budget, $5.3 million from student capital fee revenue and $2.3 million of housing, dining and parking revenue. Page 7

8 Level RESIDENT AND NON-RESIDENT TUITION DETAIL Budget Forecast Variance at 09/30/2018 Undergrad Fall Interim Spring Summer Total Fall Interim Spring Summer Total Total Resident $ 28,317,963 $ 424,621 $ 25,240,597 $ 3,285,982 $ 57,269,163 $ 27,596,648 $ 392,729 $ 24,428,674 $ 3,517,241 $ 55,935,292 $ (1,333,871) Non-Resident 5,970,331 57,540 5,209, ,371 12,126,453 5,653,393 74,436 5,123, ,890 11,816,989 (309,464) WUE 5,207,771 62,643 4,697, ,623 10,600,721 4,840,931 61,490 4,195, ,389 9,648,276 (952,445) Subtotal 39,496, ,804 35,147,492 4,807,976 79,996,337 38,090, ,655 33,747,410 5,033,520 77,400,557 (2,595,780) Extended Campus 1,860, ,857 1,445,733 1,591,579 5,032,826 1,970, ,400 1,598,094 1,752,983 5,472, ,111 FY18 Total Tuition $ 41,356,722 $ 679,661 $ 36,593,225 $ 6,399,555 $ 85,029,163 $ 40,061,432 $ 680,055 $ 35,345,504 $ 6,786,503 $ 82,873,494 $ (2,155,669) Fees 20,781,094 19,580,169 (1,200,925) Subtotal: Tuition & Fees $ 105,810,257 $ 102,453,663 $ (3,356,594) Institutional Scholarships (32,342,794) (29,717,370) 2,625,424 Discounted Revenue $ 73,467,463 $ 72,736,293 $ (731,170) Discounting Percentage 30.6% 29.0% Graduate Fall Interim Spring Summer Total Fall Interim Spring Summer Total Total Resident $ 4,668,174 $ - $ 4,437,507 $ 1,883,874 $ 10,989,555 $ 3,889,604 $ - $ 3,693,438 $ 1,339,250 $ 8,922,292 $ (2,067,263) Non-Resident 2,797,803-2,428, ,960 5,774,142 2,563,924-2,426, ,555 5,458,841 (315,301) CSPH 147, ,700 39, , , ,700 35, ,537 (3,927) Subtotal 7,613,881-6,993,586 2,471,694 17,079,161 6,601,432-6,247,500 1,843,738 14,692,670 (2,386,491) Extended Campus 6,483,444-6,189,972 5,552,349 18,225,765 6,490,695-6,064,387 5,262,126 17,817,208 (408,557) FY18 Total $ 14,097,325 $ - $ 13,183,558 $ 8,024,043 $ 35,304,926 $ 13,092,127 $ - $ 12,311,887 $ 7,105,864 $ 32,509,878 $ (2,795,048) Fees 2,026,264 2,859, ,427 Subtotal: Tuition & Fees $ 37,331,190 $ 35,369,569 $ (1,961,621) Institutional Scholarships (6,314,537) (5,969,183) 345,354 Discounted Revenue $ 31,016,653 $ 29,400,386 $ (1,616,267) Discounting Percentage 16.9% 16.9% Total Fall Interim Spring Summer Total Fall Interim Spring Summer Total Total Resident $ 32,986,137 $ 424,621 $ 29,678,104 $ 5,169,856 $ 68,258,718 $ 31,486,252 $ 392,729 $ 28,122,112 $ 4,856,491 $ 64,857,584 $ (3,401,134) Non-Resident 8,768,134 57,540 7,637,590 1,437,331 17,900,595 8,217,317 74,436 7,549,632 1,434,445 17,275,830 (624,765) WUE 5,207,771 62,643 4,697, ,623 10,600,721 4,840,931 61,490 4,195, ,389 9,648,276 (952,445) CSPH 147, ,700 39, , , ,700 35, ,537 (3,927) Subtotal 47,109, ,804 42,141,078 7,279,670 97,075,498 44,692, ,655 39,994,910 6,877,258 92,093,227 (4,982,271) Extended Campus 8,344, ,857 7,635,705 7,143,928 23,258,591 8,461, ,400 7,662,481 7,015,109 23,290,145 31,554 FY18 Total $ 55,454,047 $ 679,661 $ 49,776,783 $ 14,423,598 $ 120,334,089 $ 53,153,559 $ 680,055 $ 47,657,391 $ 13,892,367 $ 115,383,372 $ (4,950,717) Fees 22,807,358 22,439,860 (367,498) Subtotal: Tuition & Fees $ 143,141,447 $ 137,823,232 $ (5,318,215) Institutional Scholarships (38,657,331) (35,686,553) 2,970,778 Discounted Revenue $ 104,484,116 $ 102,136,679 $ (2,347,437) Page 8

9 STRATEGIC INVESTMENTS BUDGET Strategic Investment Cash Unexpended balances committed to FY19 $ 1,355,999 Cash Transferred from University Reserve 2,234,403 Cash from NCAA Endowment Distribution 515,425 Total Cash in Strategic Investments at July 1, 2018 $ 4,105,827 Accounts Payable from FY18 paid in FY19 - Accounts Payable in FY19 2,570 Year to date FY19 expenditures (671,331) Cash in Strategic Investments at September 30, 2018 $ 3,437,066 Multiyear Commitments For the Quarter Ended September 30, 2018 Total FY19 Budget Annual Forecast Variance fav (unfav) Actual Expenditures at 09/30/2018 $ Enrollment and Pricing $ 75,000 $ 350,000 $ (275,000) - Equity and Diversity 62,276 62,276-23,316 Integrated Student Support Plans Student Success Collaborative 210, , ,875 Student Food Insecurity Project 40,000 40,000-11,385 LEAP 63,382 63, Subtotal Integrated Student Support Plans $ 313,382 $ 313,382 $ - $ 133,260 Academic Portfolio Accreditation 150, ,260 2,740 46,492 Program Review & Assessment 50,000 50,000-4,672 Subtotal Academic Portfolio $ 200,000 $ 197,260 $ 2,740 $ 51,164 Research Scholarship and Creative Works Grant Match Funds 375, ,397 (123,397) 111,304 Faculty Start-Up Packages 400, ,000 25,000 47,712 Faculty Awards & Development 262, ,700 (113,896) 66,528 UNC Cancer Rehabilitation Institute 32,136 32, Center for Inclusion in STEM - 45,027 (45,027) 300 RSCW Faculty Reassign Program 120, , Unrestricted Research Incentive 483, , ,783 Subtotal Research Scholarship and Creative Works $ 1,673,614 $ 1,930,934 $ (257,320) $ 346,479 Total Core Plan Investments $ 2,324,272 $ 2,853,852 $ (529,580) $ 554,218 Support Plan Investments Information Management Plan 300, , Total Support Plan Investments $ 300,000 $ 300,000 $ - $ 750 Other Strategic Investments Emergency Management 2,000 2,000-10,553 Emerging University Priorities 125, , Athletics NCAA Distribution 100, ,000 (79,000) 15,412 Campus Commons 25,000 25, Innovation - Online Course Development 450, ,000-90,398 Total Other Strategic Investments $ 702,000 $ 781,000 $ (79,000) $ 116,363 Grand Total $ 3,326,272 $ 3,934,852 $ (608,580) $ 671,331 Page 9

10 CAPITAL PROJECTS Major Capital Project Expenditures by Funding Source For the Quarter Ended September 30, 2018 Board Approved Budget June, 2018 Commited Projects at 09/30/2018 Expended FY19 Remaining To be Expended FY19 To be Expended FY20 A. Fiscal Year New Projects (1) (2) General Fund FY19 projects with budgets less than $200,000 $ 1,253,014 $ 1,270,014 $ 147,248 $ 871,869 $ 250,897 Arts Annex silica dust capture system (Phase II) 250, , ,503 16,497 - Cogen renovation (Phase II) 500, ,000 47, , ,000 Heating Plant underground storage tank replacement 450, ,099 10, ,705 - Fire sprinkler completion funds 500, , , ,000 Subtotal General Funded Projects 2,953,014 2,913, ,667 1,928, ,897 Housing, Dining, Extended Studies, Student Fees FY19 projects with budgets less than $200, , ,667 99, ,608 - Subtotal Auxiliary and Other Funded Projects 423, ,667 99, ,608 - Restricted Capital Gifts and Grants Connect rooms 1533/1630 for Biology research space 52,026 52,026-52,026 - Add electrical for Physics/Astronomy laser 8,269 8,269 5,874 2,395 - Convert Athletics standard streaming video to HD 130, Parsons rooftop solar project - 550, ,000 - Subtotal Restricted Capital Gifts and Grants 190, ,295 5, ,421 - State Capital Appropriations Fire sprinkler upgrade-gunter (Phase II) (COP) 863, , ,187 Subtotal State Capital Appropriations 863, , ,187 Equipment 484, , , ,456 50,000 Total Fiscal Year New Projects $ 4,914,119 $ 5,403,241 $ 686,123 $ 3,203,034 $ 1,514,084 B. Fiscal Year Projects in Progress General Fund FY18 projects with budgets less than $200,000 $ 455,000 $ 388,425 $ 172,147 $ 202,228 $ 14,050 Arts Annex silica dust capture system (Phase I) - 27,164 27, Cogen renovation (Phase I) 102,000 59,731 59, Subtotal General Funded Projects 557, , , ,228 14,050 Housing, Dining, Extended Studies, Student Fees FY18 projects with budgets less than $200, , ,922 5, ,004 - Residence halls carpet and paint ($4.7M total) 335, , ,349 - Parking Lot "L" reconstruction Phase I & II 526, , , ,157 - Arlington wireless upgrades 84,000 78,220 5,127 73,093 - Subtotal Auxiliary and Other Funded Projects 1,115,855 1,483, ,669 1,346,603 - Debt Funded Capital Projects Energy performance contract 178, , ,984 - Subtotal Restricted Capital Grants/Gifts 178, , ,984 - State Capital Appropriations Fire sprinkler upgrade-mckee 491, , ,128 57,684 - Fire sprinklers Phase III of III 450, ,570 72, ,420 - Wireless & network upgrade - 14,733-14,733 - Butler Hancock pool AHU replacement (COP) 937, , , ,634 Frasier tunnel piping replacement & abatement (COP) 339, , , ,573 Fire sprinkler upgrade-frasier (Phase I) 1,611,931 1,611,931 20,142 79,858 1,511,931 Subtotal State Capital Appropriations 3,830,399 3,961, ,420 1,466,902 2,150,138 Campus Commons (multi-year) State Capital Appropriation and Debt Funding 19,661,866 23,879,879 5,750,217 18,129,662 - Capital Gifts from Foundation and Bridge Funding 3,388,678 3,388,678-3,388,678 - Subtotal Campus Commons (multi-year) 23,050,544 27,268,557 5,750,217 21,518,340 - Equipment 80, ,975 78,366 45,609 - Total Fiscal Year Projects in Progress $ 28,811,798 $ 33,444,568 $ 6,568,714 $ 24,711,666 $ 2,164,188 Total Capital Projects $ 33,725,917 $ 38,847,809 $ 7,254,837 $ 27,914,700 $ 3,678,272 (1) Board Approved Budget includes (A) new FY19 project commitments and (B) estimated remaining expenditures on FY18 projects. (2) Committed projects at 9/30/2018 includes (A) new FY19 projects commitments +/- project changes and (B) actual remaining commitments to complete FY18 projects at 9/30/2018. (3) The Parsons rooftop solar project is being funded via a $500K State Grant, $20K from LEAF & $30K from the Rebate Capital Reserve. Page 10

11 RESTRICTED GRANTS AND CONTRACTS For the Quarter Ended September 30, 2018 Original Budget Actual at 09/30/2018 REVENUE Federal Grants $ 4,400,000 $ 1,387,249 State and Local Grants 1,097, ,269 Other Private Grants 197, ,422 UNC Foundation Grants 1,201, ,392 TOTAL REVENUE $ 6,895,000 $ 1,919,332 EXPENSES/TRANSFERS Personnel Expenses Faculty Salaries $ 1,108,000 $ 326,148 Administrative Exempt Salaries 1,277, ,882 Graduate Teaching Assistants 159,000 51,634 GA/TA/GRA Tuition Scholarships 96,000 25,472 Classified Salaries 6,000 1,123 Student Wages 167,000 51,410 Other Wages/Compensations 134,000 23,734 Fringe Benefits 738, ,403 Subtotal Personnel Expenses $ 3,685,000 $ 949,804 Non-Personnel Expenses Other Current Expenses $ 215,000 $ 41,689 Purchased Services 675, ,971 Supplies 158,000 42,836 Cost Allocation & Utilities - 6,810 Grant Facility and Administrative Recovery 534, ,758 Scholarships 1,401, ,026 Travel 220,000 58,491 Capital 7,000 - Subtotal Non-Personnel Expenses $ 3,210,000 $ 969,581 NonMandatory Transfer Out - Projects - 500,000 Subtotal Transfer $ - $ 500,000 TOTAL EXPENSES/TRANSFERS $ 6,895,000 $ 2,419,385 REVENUE LESS EXPENSES/TRANSFERS $ - $ (500,053) Page 11

12 FINANCIAL AID Table 6 and Figure 4 show the total financial aid available to students from all funding sources, including state, federal, institutional, private funds and loans. Table 6 includes the FY19 budget (aid expected to be paid when the budget was developed) and the FY19 forecast (aid expected to be paid in FY19). Figure 4 shows the allocation of the forecasted financial aid by source. Approximately 70% of total financial aid is used to pay student bills, while 30% is refunded to the students for living expenses and books. Table 6. FY18 Total Financial Aid by Source and Type - Undergraduate and Graduate FY19 FY19 Aid Type and Source Budget Forecast Grants & Scholarships State $ 7,145,259 $ 7,145,259 Federal 14,958,911 14,598,911 UG Institutional (a) 32,342,794 29,717,370 UG Room & Board Waivers (a) 1,130,000 1,035,300 GR Institutional (a) 6,314,537 5,969,183 UNC Foundation (UG & GR) (b) 4,350,000 4,575,745 Private 6,910,897 6,954,072 Subtotal Grants & Scholarships $ 73,152,398 $ 69,995,840 Loans-All Sources 85,989,400 82,587,468 Total Financial Aid $ 159,141,798 $ 152,583,308 (a) Total Institutional Aid $ 39,787,331 $ 36,721,853 (b) UNC Foundation 4,350,000 4,575,745 Total Discounting on Operating Budget $ 44,137,331 $ 41,297,598 Figure 4. FY18 Financial Aid Forecast at 09/30/2018 ($152.6 million) Page 12

13 Our institutional discount rate demonstrates the financial impact on UNC of offering institutional scholarships and waivers. Our institutional discount rate is the percentage of tuition and fee revenue we use for scholarhips and waivers. Table 7 shows the undergraduate discount rate. Table 7. Undergraduate Tuition and Fee Discounting Institutionally funded financial aid for graduate students includes tuition and fee waivers and stipends for students who are awarded teaching, research, or administrative assistantships, as well as a limited number of scholarships. Only tuition and fee waivers and scholarships are included in graduate discounting calculations; stipends are budged as personnel expense for teaching, conducting research, or performing administrative tasks. Table 8 shows the graduate discount rate. Table 8. Graduate Tuition and Fee Discounting Table 9 shows the room and board discount rate. Table 9. Room and Board Discounting FY16 FY17 FY18 FY19 FY19 Actual Actual Actual Budget Forecast Undergraduate Tuition & Fees (Main & Extended) $ 86,409,555 $ 95,389,717 $ 101,150,529 $ 105,810,257 $ 102,453,663 Institutional Grants and Scholarships (18,551,234) (23,449,422) (30,294,507) (32,342,794) (29,717,370) Discounted Revenue $ 67,858,321 $ 71,940,295 $ 70,856,022 $ 73,467,463 $ 72,736,293 Discount Percent 21.5% 24.6% 29.9% 30.6% 29.0% Net Tuition Revenue Per FTE $ 8,007 $ 8,313 $ 8,168 N/A $ 8,608 FY16 FY17 FY18 FY19 FY19 Actual Actual Actual Budget Forecast Graduate Tuition & Fees (Main & Extended) $ 28,197,639 $ 32,236,827 $ 34,376,812 $ 37,331,190 $ 35,369,569 Institutional Scholarships and Waivers (4,661,415) (5,448,197) (5,856,525) (6,314,537) (5,969,183) Discounted Revenue $ 23,536,224 $ 26,788,630 $ 28,520,287 $ 31,016,653 $ 29,400,386 Discount Percent 16.5% 16.9% 17.0% 16.9% 16.9% Net Tuition Revenue Per FTE $ 12,374 $ 12,873 $ 12,581 N/A N/A FY16 FY17 FY18 FY19 FY19 Actual Actual Actual Budget Forecast Undergraduate Room & Board Revenue $ 31,851,176 $ 33,324,849 $ 34,160,857 $ 35,342,265 $ 32,747,597 Room & Board Waivers & Scholarships (1,104,576) (1,115,924) (1,147,811) (1,130,000) (1,035,300) Discounted Revenue $ 30,746,600 $ 32,208,925 $ 33,013,046 $ 34,212,265 $ 31,712,297 Discount Percent 3.5% 3.3% 3.4% 3.2% 3.2% Page 13

14 FOUNDATION SUPPORT EXPENDED* FY19 Budget FY19 Forecast Variance Restricted Program Support Athletics $ 482,125 $ 482,125 $ - Provost 5,200 5,000 (200) Library 359, ,000 (59,860) EBS 308, ,040 - HSS 161, ,000 78,056 MCB 751, ,394 - NHS 156, ,000 43,931 PVA 165, , ,636 Stryker Institute 275, ,876 - Tointon Institute 228, ,425 - Other 132, ,745 - Total Restricted Program Support $ 3,027,042 $ 3,223,605 $ 196,563 Scholarships Institutional Scholarship Support $ 1,550,000 $ 1,550,000 $ - Restricted Scholarships Named and Endowed Scholarships 3,575,000 3,800, ,745 Athletics Scholarships 500, ,000 - Greeley Promise & Other Scholarships 275, ,000 - Total Scholarship Support $ 5,900,000 $ 6,125,745 $ 225,745 Capital Support Campus Commons $ 2,037,223 $ 2,037,223 $ - NHS $ 60,295 $ 60,295 Athletics 130,000 - (130,000) PVA Gray Hall 20,000 20,000 - Total Capital Support $ 2,247,518 $ 2,117,518 $ (130,000) Grants Daniels Fund $ 149,000 $ 149,000 $ - Frontiers of Science 155, ,000 - Healthy Schools Professional Developme 630, ,000 - Grants under $100, , ,000 - Total Grants Support $ 1,201,000 $ 1,201,000 $ - Total Foundation Support $ 12,375,560 $ 12,667,868 $ 292,308 * Reflects the forecast for funds that will be transferred to UNC and used in the current year. It does not reflect funds raised. Page 14